On Monday, Raymond James changed its stance on Gilead Sciences Inc. (NASDAQ:GIL) stock, upgrading it from “market perform” to “outperform.” The firm also set a $93.00 price target for the biopharmaceutical company.
This update is bolstered by promising data from the PURPOSE-1 study of lenacapavir, a long-acting HIV pre-exposure prophylaxis (PrEP), and the anticipated approval of siladelpar for primary biliary cholangitis (PBC) later this year.
Raymond James analyst highlighted the potential for revenue growth from both linacabavir and siladelpar, which are expected to exceed current market expectations.
According to the company’s analysis, these two drugs could contribute significantly to Gilead’s revenue growth over the next five years, with expected annual sales of $3.7 billion by 2030.
Lenacapavir in particular is seen as a game changer in HIV prevention due to its long-acting formulation. The drug’s recent study results have been described as outstanding, boosting confidence in its market prospects. On the other hand, siladelphar is expected to gain approval with a brand name that is expected to be superior to that of competitor elafipranor.
Raymond James analysts are bullish on Gilead’s outlook, citing the expected revenue growth from these two treatments. That growth is seen as a key factor in raising the rating and bullish price target for Gilead Sciences, which trades on the Nasdaq under the ticker GILD.
InvestingPro Insights
In light of Raymond James’ recent upgrade of Gilead Sciences to Outperform with a $93.00 price target, InvestingPro’s current data and advice provide additional context for investors considering buying GILD stock. With a robust market cap of $83.09 billion and a dividend yield of 4.62%, Gilead demonstrates a strong financial backbone. The company’s commitment to shareholder returns is evident, having increased its dividend for 9 consecutive years – an InvestingPro tip that confirms its reliability in delivering value to investors.
Furthermore, Gilead’s valuation points to a strong free cash flow yield, which is a positive sign for investors looking for companies with strong financial health. Despite the recent market performance, with the stock trading near 52-week lows, analysts remain bullish on the company’s profitability, expecting it to remain profitable this year and over the next 12 months. This aligns well with the revenue growth potential highlighted by Raymond James, thanks to promising drugs such as lenacapavir and sildenafil.
For investors looking for deeper analysis and additional insights, InvestingPro offers a comprehensive suite of tips and metrics. There are 5 more InvestingPro tips available for Gilead Sciences, which can be accessed by visiting https://www.investing.com/pro/GILD. To enhance your investment research, use coupon code Pro News 24 Get up to 10% off your Pro annual subscription and Pro+ annual or semi-annual subscription.
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